Half-year Results
R.E.A. Holdings plc reported a profit before tax of $25.9 million for the six months ended 30 June 2026, a significant increase from $5.9 million in the prior year, driven by improved operating profit of $23.3 million and a $7.2 million exchange gain. Revenue was $88.6 million, down slightly from $92.4 million, impacted by customer delivery delays, though average selling prices for CPO remained firm. EBITDA rose to $35.2 million from $33.4 million, and net cash from operating activities increased substantially to $19.6 million. The company also strengthened its balance sheet, reducing net indebtedness to $147.6 million and securing new Indonesian bank facilities of $38.9 million. Mining operations are building, and a new agreement for coal mining on 560 hectares is expected to generate substantial long-term revenue.
| Half year to 30 Jun 2026 | Now | Year before | Change |
|---|---|---|---|
| Revenue | £65.9m | £71.3m | −7.6% |
| Operating profit | £17.4m | £14.8m | +17.0% |
| Profit before tax | £19.2m | £4.5m | +325.7% |
| Net income | £6.7m | (£1.9m) | |
| Cash from operations | £14.6m | £4.5m | +227.2% |
| Cash | £17.1m | £37.0m | −53.9% |
Figures as reported, converted to £ where needed – see all financials.
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23-Sep-2026 / 07:00 GMT/BST
R.E.A. Holdings plc (“REA” or the “company”)
REA today publishes the group’s half yearly report for the six months to 30 June 2026. Click the link at the end of this announcement to download a PDF of the report.
The 2026 half yearly report will also be available shortly at www.rea.co.uk/investors/financial-reports.
HIGHLIGHTS
Overview
Agricultural operations performing well with the benefits of the replanting programme increasingly apparent
Increase in profitability and EBITDA, despite uncertainties surrounding CPO export regulations impacting both sales and selling prices in the period
Mining activities and product demand building
Balance sheet continues to strengthen as debt profile improves
Financial
Revenue of $88.6 million (2025: $92.4 million), reflecting delays by customers in taking deliveries of CPO over the period which are now being caught up
Firm average selling prices for CPO and CPKO of, respectively, $853 per tonne (2025: $856 per tonne), and $1,759 per tonne (2025: $1,657 per tonne)
EBITDA of $35.2 million (2025: $33.4 million) and operating profit of $23.3 million (2025: $19.2 million)
Profit before tax of $25.9 million, including exchange gain of $7.2 million (2025: profit of $5.9 million including exchange loss of $2.4 million and $5.7 million loss on disposal of CDM)
Net cash from operating activities increased to $19.6 million (2025: $5.8 million)
New Indonesian bank facilities of $38.9 million to finance replanting and dollar note redemption further reducing dependence on non-Indonesian funding sources
Repurchase of $7.2 million nominal of the outstanding $27.0 million 7.5 per cent dollar notes 2028
Group net indebtedness reduced to $147.6 million at 30 June 2026 (31 December 2025: $152.3 million) with an improved maturity profile
Agricultural operations
Total FFB harvested of 421,588 tonnes (2025: 425,061 tonnes), with the reduction in the group’s own crop due to replanting substantially offset by increased purchases of third party FFB
CPO extraction rate maintained above 22 per cent
Oil losses comfortably below industry norms
Replanting and extension planting proceeding in line with 2026 targets
Mining operations
ATP stone production building towards satisfying contracted demand totalling approximately 1 million tonnes by the end of 2027
Commissioning trials of MCU’s sand washing plant completed; initial sand sale of 15,000 tonnes to a local customer and good potential demand from both international and local customers
New initiative
Memorandum of understanding reached for mining by a neighbouring coal company within an area of approximately 560 hectares overlapping REA Kaltim estates, generating substantial long-term access fee revenues while preserving future use of the land following completion of mining operations
Sustainability and climate
100 per cent of the group’s own plantations retaining RSPO certification
Programmes supporting responsible production, forest and biodiversity protection and smallholder engagement continuing to strengthen the group’s sustainability performance, climate action and supply chain integrity
Outlook
Encouraging outlook for palm product prices, supported by strong demand for vegetable oils, the continued expansion of Indonesian biodiesel programmes and constraints on growth in global oil palm hectarage
Stronger CPO and CPKO prices resulting from reduced regional production largely offsetting the potential adverse, albeit limited, impact on group crops of the developing El Niño event
Investment in replanting and extension planting progressing well with the current programme expected to substantially complete in 2028 leading to a significant uplift in future production
Group positioned to deliver long-term value for shareholders through recent balance sheet initiatives, remunerative palm product prices and positive prospects for the mining operations
STATEMENT FROM THE MANAGING DIRECTOR
Commenting on the results, Luke Robinow, managing director, said: “H1 was a period of solid operational performance, delivering growth in profitability due to firm, sustained pricing of palm products. We successfully navigated some challenges resulting from market uncertainty around the export of Indonesian palm products. The stabilisation of the market and subsequent unwinding of our inventory position is expected to underpin our full year performance. In addition, our mining operations have continued to build.
I am particularly pleased with the recent agreement to allow access to 560 hectares of land to a neighbouring coal company that is expected to generate substantial income over a twelve year mining period.
Importantly, we also made good progress in line with our strategic goal of increasing hectarage and yields through the expansion and replanting programme which will make material contributions in the coming years. The additional cash flow from this programme will be used to pay down debt, adding significant shareholder value in the process.”
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2026
| 30 June | 30 June | 31 December | |
|---|---|---|---|
| 2026 | 2025 | 2025 | |
| $’000 | $’000 | $’000 | |
| Revenue | 88,608 | 92,410 | 194,944 |
| Net gain / (loss) arising from changes in fair value of biological assets | 642 | 478 | (730) |
| Cost of sales | (57,881) | (63,829) | (136,513) |
| Gross profit | 31,369 | 29,059 | 57,701 |
| Distribution costs | (669) | (507) | (1,185) |
| Administrative expenses | (7,366) | (9,334) | (16,229) |
| Operating profit | 23,334 | 19,218 | 40,287 |
| Interest income | 139 | 701 | 995 |
| Losses on disposal of subsidiaries and similar charges | – | (5,723) | (6,280) |
| Other gains / (losses) | 7,526 | (2,428) | 2,460 |
| Finance costs | (5,115) | (5,911) | (13,430) |
| Profit before tax | 25,884 | 5,857 | 24,032 |
| Tax | (9,506) | (8,444) | (9,754) |
| Profit / (loss) for the period | 16,378 | (2,587) | 14,278 |
| Attributable to: | |||
| Equity shareholders | 9,034 | (2,425) | 8,483 |
| Non-controlling interests | 7,344 | (162) | 5,795 |
| 16,378 | (2,587) | 14,278 | |
| Profit / (loss) per 25p ordinary share (US cents) | |||
| Basic | 10.9 | (15.6) | (0.7) |
All operations in all periods are continuing.
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2026
| 30 June | 30 June | 31 December | |
|---|---|---|---|
| 2026 | 2025 | 2025 | |
| $’000 | $’000 | $’000 | |
| Non-current assets | |||
| Goodwill | 11,144 | 11,144 | 11,144 |
| Intangible assets | 1,791 | 2,331 | 2,147 |
| Property, plant and equipment | 406,438 | 372,280 | 395,114 |
| Land | 56,965 | 54,295 | 51,951 |
| Financial assets | 5,330 | 24,902 | 10,308 |
| Non-financial assets | 5,924 | – | 11,030 |
| Deferred tax assets | 9,877 | 16,364 | 13,878 |
| Total non-current assets | 497,469 | 481,316 | 495,572 |
| Current assets | |||
| Inventories | 31,959 | 25,403 | 19,212 |
| Biological assets | 3,250 | 3,816 | 2,608 |
| Trade and other receivables | 37,164 | 39,996 | 35,965 |
| Current tax asset | 1,838 | 1,243 | 2,215 |
| Restricted cash at bank | 3,995 | 4,412 | 4,267 |
| Cash and cash equivalents | 22,630 | 50,796 | 18,973 |
| Total current assets | 100,836 | 125,666 | 83,240 |
| Total assets | 598,305 | 606,982 | 578,812 |
| Current liabilities | |||
| Trade and other payables | (45,559) | (33,552) | (40,583) |
| Bank loans | (26,528) | (24,068) | (22,894) |
| Sterling notes | – | (30,429) | – |
| Dollar notes | – | (26,829) | (9,430) |
| Other loans and payables | (1,832) | (8,649) | (1,832) |
| Total current liabilities | (73,919) | (123,527) | (74,739) |
| Non-current liabilities | |||
| Bank loans | (128,692) | (132,944) | (125,952) |
| Dollar notes | (18,983) | – | (17,221) |
| Deferred tax liabilities | (53,073) | (50,923) | (49,821) |
| Other loans and payables | (9,628) | (11,129) | (9,816) |
| Total non-current liabilities | (210,376) | (194,996) | (202,810) |
| Total liabilities | (284,295) | (318,523) | (277,549) |
| Net assets | 314,010 | 288,459 | 301,263 |
| Equity | |||
| Share capital | 133,590 | 133,590 | 133,590 |
| Share premium account | 27,193 | 47,374 | 27,193 |
| Translation reserve | (40,263) | (25,824) | (40,909) |
| Retained earnings | 109,798 | 62,960 | 105,041 |
| 230,318 | 218,100 | 224,915 | |
| Non-controlling interests | 83,692 | 70,359 | 76,348 |
| Total equity | 314,010 | 288,459 | 301,263 |
| CONSOLIDATED CASH FLOW STATEMENT | |||
| FOR THE SIX MONTHS ENDED 30 JUNE 2026 | |||
| 30 June | 30 June | 31 December | |
| 2026 | 2025 | 2025 | |
| $’000 | $’000 | $’000 | |
| Net cash from operating activities | 19,599 | 5,770 | 41,648 |
| Investing activities | |||
| Interest received | 139 | 701 | 995 |
| Proceeds on disposal of PPE | 55 | – | 1,056 |
| Purchases of intangible assets and PPE | (17,704) | (16,040) | (34,394) |
| Expenditure on land | (240) | (664) | (1,489) |
| Net investment sand interest | – | (3,070) | (1,132) |
| Net cash movement on acquisition of new subsidiary | 24 | – | (1,956) |
| Net proceeds on disposal of group company | – | 7,993 | 7,993 |
| Prepayments in respect of non-current assets | (208) | – | (10,889) |
| Net cash used in investing activities | (17,934) | (11,080) | (39,816) |
| Financing activities | |||
| Preference dividends paid | (4,241) | (4,414) | (8,782) |
| Repayment of bank borrowings | (9,666) | (9,804) | (19,660) |
| New bank borrowings drawn | 24,830 | 47,570 | 53,651 |
| Decrease in restricted cash at bank | 272 | 1,420 | 1,565 |
| Purchase of dollar notes held in treasury | (7,264) | – | – |
| Purchase of sterling notes for cancellation | – | (381) | (381) |
| Redemption of sterling notes | – | – | (30,009) |
| Repayment of borrowings from non-controlling shareholder | – | (8,750) | (8,750) |
| Cost of capital reduction | – | – | (181) |
| Repayment of lease liabilities | (1,467) | (1,500) | (3,075) |
| Net cash from / (used in) financing activities | 2,464 | 24,141 | (15,622) |
| Cash and cash equivalents | |||
| Net increase / (decrease) in cash and cash equivalents | 4,129 | 18,831 | (13,790) |
| Cash and cash equivalents at beginning of period | 18,973 | 33,005 | 33,005 |
| Effect of exchange rate changes | (472) | (1,040) | (242) |
| Cash and cash equivalents at end of period | 22,630 | 50,796 | 18,973 |
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